Online lending platform ‘LoanTap’ has successfully secured an amount of $6.25 million (Rs 42.83 crore) in an equity funding round. The round was led by Shunwei Capital, which is a Beijing-based venture capital firm.
Apart from Shunwei Capital, the funding round also witnessed the participation of Tuscan Ventures (Mumbai-based private investment company) and Ashish Goenka (owner of Suashish Diamonds) along with existing investors such as India Quotient and Kae Capital.
“Our plan is to leverage the Rs 40 crore that we have raised by four to five times to source around Rs 200 crore from lending institutions, which will be used to lend out to more consumers,” said Satyam Kumar, co-founder of LoanTap.
Founded in 2016 by Satyam Kumar and Vikas Kumar, the fintech firm LoanTap offers several loan products including EMI-based loans, EMI-free loans and, personal line of credit. LoanTap has an in-house NBFC platform, which disburses loan directly and makes availing loans simple and hassle-free for borrowers.
Before this funding round, the Pune-based company had raised funds in June 2017 amounting to $4 million in a Series B funding round. This particular round saw the participation of Kae Capital, India Quotient, IFMR, and MAS Financial Services Ltd.
“We lend up to Rs 10 lakh with an average of Rs 3 lakh for an average period of around 48 months. We have managed to retain the nonperforming asset level to less than 0.35% as of our March balance sheet,” said Kumar.
The basic aim of the company through this funding round is the expand and improve its customer base. The company is in operation for the past 1 month and provides services majorly to the salaried professionals who work in information technology companies and has around 35% of its customers from Bengaluru. With this growth rate, the Indian fintech market is expected to reach $2.4 Bn by 2020.